This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
According to the table shown,when 1 unit is produced:

Question

This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market. 
According to the table shown,when 1 unit is produced:

Quizplus · Accepted Answer

When a firm is operating in a perfectly competitive market, marginal revenue is equal to the market price. In this case, the market price is $100, and when 1 unit is produced, the total revenue is also $100. The marginal cost of producing the first unit is $60, which is less than the market price. This means that the firm can earn additional profit by producing more units. Therefore, the firm should produce more and increase its output level. This is consistent with the fact that marginal revenue exceeds marginal cost.

This Table Shows the Total Costs for Various Levels of Output